The impact of poverty alleviation policy on the industrial structure: Evidence from the Qinba Mountain contiguous poverty-stricken areas

In 2015, the Chinese government issued the Decision on Poverty Alleviation(DPA), requiring poverty-stricken areas to develop local characteristic industries based on their resource endowments, to promote industrial structure diversification and industrial structure upgrading through industry-driven poverty alleviation. However, existing research lacks empirical analysis to evaluate it. Therefore, this paper takes poor counties in the Qinba Mountain contiguous poverty-stricken areas(QMCPA) as an example, using the difference in difference model and boundary effect model to evaluate whether DPA has promoted industrial structure upgrading and industrial structure diversification in poor counties. The results show that the DPA has promoted industrial structure upgrading and improved industrial structure diversification in the QMCPA. However, the effectiveness of it is not sufficient. Poor counties have failed to maintain the policy requirement of developing characteristic industries based on local natural resource endowments, leading to a decline in the degree of industrial structure diversification in the later period of the policy. This study indicates that local governments should strive to develop advantageous industries and form a division of labor and cooperation with neighboring areas, strengthen inter-regional cooperation and contact, and enhance anti-risk capabilities to avoid homogenized competition. Studying the changes in industrial structure in the QMCPA has important significance for the long-term stable development and poverty elimination of various poor areas.